Problem 12-48 (Algorithmic) (LO. 1, 6, 8, 9, 11) Orange, Inc., a calendar year corporation, elects 5 corporation status for 2021. The company generated a 1374,800 NO 2020 another NOL of $224,680 in 2021. Orange recorded no other transactions for the year. At all times in 2020 and 2021, the stack of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $25,004 basis is the Orange stock at the beginning of 2021. Complete the statement below that outlines the Federal income tax issues that Pute faces The 2020 C corporation NOL of $374,000 does not carry 2021 by Pete is 63,716 X with a Fredak forward into the 5 corporation year. Therefore, the deductible less in 63,716 X carryover CheckMy One major advantage of an 5 election is the ability to pass through any net operating loss of the corporation directly to the shareholders. A shareholder can deduct an NOL for the year in which the 5 corporation's tax year ends. The corporation is not entided to any deduction for the NOL